DEBT (Tables)

9 Months Ended

Sep. 30, 2014

A summary of the Company’s debt is as follows:


	Weighted-Average Stated Interest Rate as of					Balance as of
($ in thousands)	September 30, 2014		December 31, 2013		Maturity Date	September 30, 2014		December 31, 2013
Secured line of credit (1)		2.05%		2.32%	January 2017	$	85,000	$	85,000
Unsecured line of credit (2)		1.90%		2.16%	August 2015		223,000		165,000
Unsecured term loans (3)		2.13%		2.03%	January 2018 - January 2019		500,000		500,000
Variable-rate mortgage note (4)		2.15%		2.19%	May 2015		9,080		9,080
Fixed-rate mortgage notes (5)		4.25%		4.26%	June 2015 - November 2024		1,128,817		1,117,551

Total / Weighted-Average		3.33%		3.39%		$	1,945,897	$	1,876,631

Gross book value of properties encumbered by debt						$	2,404,595	$	2,285,998

(1)	The interest rate is calculated based on one-month London Interbank Offered Rate (“LIBOR”), plus a margin ranging from 1.80% to 2.65%. As of September 30, 2014, the unused portion was $55.0 million, of which $36.9 million was available.

(2)	The interest rate is calculated based on one-month LIBOR, plus a margin ranging from 1.75% to 2.50%. As of September 30, 2014, the unused portion was $277.0 million, of which $75.5 million was available.

(3)

The interest rate is calculated based on one-month LIBOR, plus a margin ranging from 1.50% to 2.45%. Effective January 14, 2014, the interest rate for the $200.0 million unsecured term loan was fixed through the use of interest rate swaps at an all-in interest rate of 2.68% as of September 30, 2014.

(4)	The interest rate is calculated based on one-month LIBOR, plus 2.00%.

(5)	Interest rates range from 3.30% to 6.24%.

Principal Payments Due on Debt during Each of Next Five Years and Thereafter

As of September 30, 2014, the principal payments due on the Company’s consolidated debt during each of the next five years and thereafter were as follows:


(in thousands)	Lines of Credit		Term Loans		Mortgage Notes		Total
Remainder of 2014	$	-	$	-	$	1,808	$	1,808
2015 (1)		223,000		-		52,981		275,981
2016		-		-		20,040		20,040
2017 (1)		85,000		-		62,175		147,175
2018		-		200,000		169,418		369,418
Thereafter		-		300,000		826,556		1,126,556

Total principal payments		308,000		500,000		1,132,978		1,940,978
Unamortized premium on assumed debt		-		-		4,919		4,919

Total	$	308,000	$	500,000	$	1,137,897	$	1,945,897

(1)	The line of credit may be extended pursuant to two one-year extension options, subject to certain conditions.

Summary of Location and Fair Value of Cash Flow Hedges

The following table summarizes the location and fair value of the cash flow hedges on the Company’s condensed consolidated balance sheets:


				Fair Value as of
(in thousands)	Notional Amount		Balance Sheet Location	September 30, 2014		December 31, 2013
Interest rate swaps	$	507,560	(Other liabilities) / Other assets	$	(1,029)	$	2,613

Effect of Derivative Instruments

The following table presents the effect of the Company’s cash flow hedges on the Company’s condensed consolidated financial statements:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2014		2013		2014		2013
Interest rate swaps:
Gain (loss) recognized in AOCI (effective portion)	$	2,761	$	(1,421)	$	(2,367)	$	1,158
Loss reclassified from AOCI into income (effective portion)		(450)		(29)		(1,275)		(83)

Net other comprehensive gain (loss)	$	2,311	$	(1,450)	$	(3,642)	$	1,075